 |
YELLOW SHEET Office of the State Auditor of Missouri |
June 5, 2001
Report No. 2001-45
The following report is our
review of the Missouri State Employees Retirement System.
The Missouri State Employees� Retirement System Board of
Trustees has not formally solicited proposals for the actuarial consulting
service or the investment consulting service contracts in recent years.� The Board spends approximately $150,000 and
$200,000, respectively, for these services annually.� The Board has not solicited proposals for the actuarial
consulting services since 1992 and the investment consulting services since
1993.� Without requesting proposals for such
services periodically, the Board of Trustees has not ensured it will receive
these services at a fair price.��
In its response to the finding, the Executive Director of
the retirement system, on behalf of the Board, indicated that soliciting
proposals was not applicable to these types of professional services and might,
instead, work against the best interest of the plan and its participants.� The response also indicated that the Board
had documented the steps it had taken, including the use of independent firms
to review the work of the consultants, to ensure that the services provided by
the two firms were of high quality and were obtained at a fair price.� The full response is included in the audit
report.
The Missouri State Employees Retirement System was
created September 1, 1957, under an act of the General Assembly to provide
retirement benefits to most full-time state employees not covered under other
retirement plans of the state, including members of the Water Patrol, members
of the General Assembly, elected state officials, administrative law judges and
legal advisors, and judges.� The system
provides retirement, survivor and disability benefits, and life insurance to
its members.� The Missouri State
Employees� Retirement System administers three retirement plans and an
insurance plan:� Missouri State
Employees� Plan, Administrative Law Judges and Legal Advisors� Plan, Judicial
Plan, and Missouri State Insurance Plan.
All three retirement plans administered by the Missouri
State Employees� Retirement System are non-contributory, with the entire cost
paid by the State of Missouri.� Service
retirement benefits, retirement ages and service requirements, and payment
options vary for the different employee classes within the three plans.� Details regarding each plan are discussed in
the Statistical Section of the report.
